When COBRA is elected for the continuation of health coverage, what happens to the premium?

When COBRA (Consolidated Omnibus Budget Reconciliation Act) is elected, the premium typically increases. Under COBRA, individuals who choose to continue their health insurance coverage after leaving their job are required to pay the full premium for their coverage. This premium often includes both the employee's portion and the portion previously covered by the employer, plus an additional administrative fee. As a result, the total cost can be significantly higher than what the individual was paying while actively employed.

This increased financial responsibility is a crucial aspect of COBRA, emphasizing that while it provides the option to maintain health coverage, it does so at a cost that reflects the full value of the insurance plan, rather than the subsidized rate that employees enjoyed while employed.